Authorities say the money will come from a portion of the funds collected from the business license fees on residential rental property owners. It will be paid over the next five years in payments of no less than $200,000 per year.

Officials said a news conference is planned at the riverfront site Thursday to provide more information about the plans.

Authorities say the university plans to build an academic center used primarily for business courses. Nearly four acres of land valued then at more than $2.9 million was donated in September 2008 by the city to Troy.